AT&T relents on iPhone pricing for upgraders

AT&T Inc. says it will allow some current iPhone owners to upgrade to a new model at the same price as new buyers. The new model comes out Friday.

The move announced Wednesday follows some criticism from iPhone owners who believe that AT&T's prices are unfair. Many current iPhone owners would have to pay $399 for Apple Inc.'s new phone, the iPhone 3G S, compared with $199 for new buyers.

Those who've owned their iPhones for 12 to 18 months and pay at least $100 a month in service fees already qualify for the "new buyer price." AT&T now says that those who would be eligible for this price by September will be eligible on Friday.